That is the view put forward by Finsia in its submission to the Parliamentary Joint Committee on Corporations and Financial Services’ inquiry into proposals to lift the professional, ethical and education standards in the financial services industry (PJC).
Finsia said that the introduction of a national industry exam would help boost consumer confidence and was an opportunity to set a global benchmark.
“The community understand the national exam as an independent test of competence,” Finsia chief executive Russell Thomas said. “An examination provides assurance that everyone in the industry, no matter where that adviser has previously studied, is up to the professional standard.”
Finsia and other industry bodies such as the AFA and Financial Services Union have been vocal about the need to set measurable education standards.
The PJC originally presented its recommendations to the federal government on 19 December 2014 and called for submissions for further consultation.
Earlier this month Assistant Treasurer Josh Frydenberg hosted a roundtable with the peak industry bodies, consumer groups, academics and ASIC chairman Greg Medcraft to discuss the lifting of professional standards.
“All participants were unanimous in the view that we need to lift industry standards,” Mr Frydenberg said. “There was strong agreement that the focus of reform should be on the consumer, and that rebuilding consumer confidence in the financial advice industry is paramount.”
Gosh isn’t it lucky that Finsia do not have a vested interest. Hang on – I may not be right on that!!!
Education will NOT stop the rot of advsiers, dealer groups and product manufactures, what a joke.
All these so called industry groups want to do is make money out of selling education.
I wonder if they would be stating these facts if they were NOT to provide the educational service, be that direct or indirectly
Wow, a global exam and we are fantastic. Does this imply your lack of knowledge of current education. Did I waste my time completing degrees, diplomas and CFP certification, has the professional body been hiding something or is this just another woftam to cover those who have not completed education within the various bodies you “represent”. Lets see accountants doctors solicitors also do national exams–ha ha!!! For those of us who have attained the highest designation,education and continue to complete CPD, this statement is a damn insult. Watch what you ask for, especially if the exam standard is high and if it is not- refer woftam translation.
Let me guess, FINSIA are putting up their hand to run the test? A national exam is a stupid idea which has been discredited by academics. No other profession does this. Lift the bar to a degree, grad dip or masters. That will raise the standard once and for all. Even the banks are going this way.
There is already a national examination in existence. Its called the CFP – in fact its five examinations.
I did my CFP certification the hard way and completely object to the notion of this for people who also did it the hard way.
In a word – unnecessary.
What a self serving apporach from Finsia as an education provider. I have a Bachelor of Commerce, Diploma of Financial Services, CFP, ACA, CPA complete my ongoing training each year and has been providing advice to clients for 28 years. If you think me doing a Mickey Mouse exam dreamed up by ASIC is going to mean I provide better advice to clients then you really are living in Disneyland. I will not be alone with this so lets have a real discussion on education requirements not more red tape.
Fins-who?? Obviously not the most relevant organisation in the industry.
I disagree with making everyone doing a national industry exam. Why – because I don’t have time to do more than I do now. Doesn’t CPD points, dealer group making you do accreditations etc cover all of this? How about telling people what we have to do to keep working as a financial planner. Tell the public about all the compliance that has to be followed. Maybe then the public will get a feel for how much we have to do for them behind the scenes and realise why we need to charge for our services.
Ha ha, ‘regardless of previous qualifications’ – if it was free I wouldn’t be questioning it but I have little doubt FINSIA is looking for a $. So considering I have a B.Ec (Acc major), Grad.Dip Applied Finance and completed 5 subject CFP, 25 years experience, and yet that’s not a ‘measurable’ standard – right? And yet every other profession has sufficient measurable standards already in place??? So I could complete a law degree, get enough hours and experience, and be appointed to the High Court of Australia – without even being tested for sanity let alone competency? At the end of the day, ‘we’ as advisers, are nothing more than political and revenue raising slaves to the agenda driven policy machine…
Given that the problems in the industry we have seen have not necessarily been from incompetence, but from fraud, how does having doing an exam do anything to stop the bad eggs from attacking again? The types of advice and the customers I see are likely to be different from the planner down the road. How are they going to come up with an exam that covers us all?
Gee whiz who would have thought that a organisation that make money out of training would be pushing this barrow. I am not aware that the problems with the industry is about education standards more the continual push to make a sale. Seriously how many hoops can one impose. Glad my Bachelor in Economics & Finance is consider inadequate.
Okay, so I did an undergrad and post grad degree for the fun of it and so have many other advisers, but FINSIA say all advisers must do a national exam purely to boost our public persona. What about all the accreditation we already do? Why don’t you just target new entrants to the industry with the exam, or advisers with bare minimum RG146? Save everyone else some time to do the actual work clients pay us for. I guess that won’t pump up your revenue enough.